By Evan JaksonFebruary 1, 2018

Stripe withdrew interest on Bitcoin payment system support

Stripe one of the major companies that supported Bitcoin payment system in doing all online financial transaction for more than 100,000s top businesses have finally declined their interest in using Bitcoin currency in making any further payments.

Support behind Bitcoin twist

Reason behind this outcome according to Stripe is that Bitcoin is not regarded as something to make payment with, but as an asset to be traded. Further stating that; few online merchant who had wanted to support Bitcoin as a payment system have drastically withdrew interest due to rise in price per transaction, increase in time of transaction and constant fluctuation of Bitcoin price.

In calling our minds back, Mr Tom Karlo in his blog said that; Stripe in 2014 was the first major company to support Bitcoin payment system because they had hoped that Bitcoin would become a way for people in places with low credit card penetration or prohibitively high credit card fees to do transactions online. Not knowing that Bitcoin will today be better suited as an asset than a means of exchange. In trying to explain the reason why things turned out this way, he stated that there has been a huge surge of interest in the Bitcoin digital currency over the past year or so, driven largely by its rapid increase in price, which has now led to the huge swings in price and also causing the time needed for a transaction to be completed to rise. So therefore, influencing either gain or loss by the time a transaction will be completed or confirmed. As a result of this change Mr Karlo said that “Stripe’s customers have to pay a fee of tens of USD almost as expensive as bank wires, for a regular Bitcoin transaction, and this has resulted to decrease in demand by customers”.

Cryptocurrencies in it ending stage

Mr. Tom Karlo, Stripe’s product manager finally stated in his blog that, “Stripe said it would start winding down its support for Bitcoin immediately and would stop all transactions by 23 April. But that doesn’t mean that Stripe is giving up on every cryptocurrencies. Stating that they’re still interested on some other cryptocurrencies like Lightning and OmiseGO because of their clever proposals in enabling faster payment system and Ethereum for their consistency to “spawn many high-potential projects.”